Is the price of gold too high?  Too low?  Is it in bubble territory, ready to drop rapidly?  Think about what bubbles are – you know there is a bubble when everyone is trying to participate.  For example, during the bubble, my tennis pro was buying and selling options several times per day!  I […]

Italian Contagion

Just a couple of weeks ago, with the supposed “solution” to the Greek crisis, many market participants thought that the politicians had bought at least several months of relief from the European debt crisis.  But, just as the markets attacked the stocks of both Morgan Stanley and Goldman Sachs after the failure of Lehman, it […]

What’s Next for the Fed: Rock ‘N Roll!

On July 8, immediately after the dismal employment report, this is what the Wall Street Journal had to say: After spending funds to fight the crisis, policy makers have few tools left to stimulate the economy.  Mr. Obama is focused on cutting the budget deficit, while the Federal Reserve, which sees unemployment at about 8.0% […]